Music fares better than most in recession.

The music industry is holding up better than some other creative industries in credit-crunch Britain, according to a new report that shows it accounted for fewer than 10% of business failures in the sector.

While advertising is experiencing the worst level (13%) of business failures among the creative and cultural industries (CCI), the new Creative & Cultural Skills (C&CSkills) report shows that in 2008-09 the UK music sector suffered 8% business deaths. However, that was up significantly from 2007-08 when only 3% of companies went to the wall.

Not surprisingly, with the decimation of the retail and distribution sectors at the end of last year, UK Creative and Cultural Industries in Recession confirms that most of the failures occurred in music retailing.

Co-author and C&CSkills research manager Dr James Evans says, "Retailers Woolworths and Zavvi closing down has affected music retail sales and independent retailers and producers - more than a quarter of the UK's independent music stores went out of business in 2008. The impact of digitisation on the music industry is also a factor."

The report shows that business-facing CCIs are at most risk because they are losing income from corporate clients: this might account for the poor performance of advertising and design, which also has links to other sectors badly affected by the recession, including construction and building.

And the ...